Everyone knows the value of life insurance and what can happen if you don't have it. A spouse dies, leaving the other spouse with little or no income and no resources. Dreams of staying in your home or sending the kids to college may go by the wayside. Everything caves in on itself. So you need it, but committing to buying it is something else. First off, life insurance is an important part of your financial plan. If you are married or have kids, buying life insurance is a no brainer. There … [Read more...] about Term vs. Whole Life Insurance. Which One is Best for You?
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Who Needs a Pour Over Will?
Many people might not know the term "pour over will." But if you want to create a revocable living trust, you definitely need one. A pour over will works in tandem with a revocable trust. (A revocable trust is created while you are alive and can be changed or amended or even terminated during your lifetime. With some exceptions, it becomes irrevocable on your death.) The main benefit of this trust is that it allows your estate to avoid probate and the associated high court costs and attorney … [Read more...] about Who Needs a Pour Over Will?
The Long and Short of Disability Insurance
One of people's greatest fears is that they will get sick or injured, can't work for a long time, get in debt, and then lose their savings and their house, basically losing their independence and dignity. Sounds grim, and it is. If you have enough money in savings or investments that you could weather up to five years of unemployment, stop reading here. For the rest of you, disability insurance might be the answer. But do you need short-term disability or long-term disability, or both? … [Read more...] about The Long and Short of Disability Insurance
Feeling Charitable? Give It Away and Come Out Ahead
What if you bought a piece of property years ago for about $25,000 and now it is worth more than $300,000? You don't want it anymore but want to get rid of it in a way that maximizes your tax advantages. If you sold it outright, you might have to pay capital gains tax, and you don't want that. How about making a charitable remainder trust to your favorite cause? Knowing that both you and the charity will benefit makes it an especially attractive option. How it works: You must be able to … [Read more...] about Feeling Charitable? Give It Away and Come Out Ahead
How To Boost Your Retirement Savings
Along with estate planning naturally comes thoughts about your golden years. Where will you live? How will you take care of yourself? Will you have enough money to live on for the rest of your life? Worries about running out of money as you get older is a common fear. And for good reason. Some studies show that many over the age of 55 have only $10,000, if that, in retirement savings. That's woefully short. Although we all know people who have lived comfortably, but frugally, on almost … [Read more...] about How To Boost Your Retirement Savings
Annual Gift Tax Exclusion: Tax Free Money Zone
If you have a large estate and want to start giving it away, but want to limit your tax liability, consider using the annual gift tax exclusion. What that means is that you can give up to $13,000 per person per calendar year and neither you nor the recipient has to pay taxes on it. So, you can give $13,000 per year to 10 people or 1,000 people and there will be no taxes. And you can do that year after year. (The amount of the exclusion is increased from time to time.) You and your spouse can … [Read more...] about Annual Gift Tax Exclusion: Tax Free Money Zone
Why You Should Consider Advanced Estate Planning
Basic estate planning is fine if your estate is simple and doesn’t require a great deal of arrangements. If, however, your estate has any special circumstances, you may want to consider advanced planning. It can help ease the estate settlement process for your family in three ways. Protect Your Belongings Through features such as Irrevocable Trusts, Advanced Estate Planning offers protection for your belongings. Asset protection keeps your retirement funds and your property safe from being … [Read more...] about Why You Should Consider Advanced Estate Planning
What a Last Will and Testament Does Not Cover
If you have a Last Will and Testament, you can use it to state your final wishes about your property and heirs, and name your estate executor. If you are the parent of a minor child, your Will can also be used to name a guardian. There are, however, many things Wills do not cover. Jointly Owned Property If you own property in joint tenancy with someone else or in tenancy by entirety with your spouse, you cannot use your Will to leave that property to someone else. You can only leave … [Read more...] about What a Last Will and Testament Does Not Cover
Ease Estate Settlement for Your Loved Ones
Settling an estate takes time and money. You can ease the settlement process for your own estate by planning ahead. Here are three ways to help your family member’s navigate your affairs when you pass away. Safe Storage of Documents Upon your death your family will have to gather up all of your estate documents and meet with an attorney. You can make this process easier by storing your documents in a safe but easy to find location. Some common storage places include: safe deposit boxes, … [Read more...] about Ease Estate Settlement for Your Loved Ones
What is a “Look Back” Period?
When people refer to a "look back" period, more than likely they are talking about the period of time that Medicaid can look back to see if someone has transferred assets for less than fair market value. This is to see if a person qualifies for Medicaid, which is a needs based program. To qualify for Medicaid, a single person cannot have more than $1,500 in assets. Medicaid can "look back" 5 years to see if the person has transferred assets within that time frame. If so, a period of … [Read more...] about What is a “Look Back” Period?
